If wage-price controls are unworkable, and presidential jawboning too easy to defy, and balancing the budget takes too long, and tight money threatens recession, what is left to fight inflation? The answer, Washington officials are reluctantly concluding, just might be to use income taxes as a stick to beat or a carrot to lure workers and companies into holding wages and prices down.
The Senate Banking Committee staff is drafting such a Tax-based Incomes Policy (TIP) bill, which Chairman William Proxmire plans to introduce late this year or early next. Meanwhile, some Treasury and Internal Revenue Service staffers were ordered to cancel...
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